Derby Builder Jailed for Fraudulent Trading After Devastating Homes of Victims

On 26 August 2026, the Court of Appeal granted a suspension of the prison sentence for Michael Haslam, who had initially received a 28-month sentence on 1 July. The court decided that his sentence would now be suspended for two years, along with a requirement for rehabilitation and the completion of 160 hours of unpaid work.

Haslam, a builder from Derby, had defrauded homeowners of over £200,000 between 2020 and 2022, fully aware that his company, M&J Builders Limited, was insolvent. His actions resulted in numerous victims being left with unfinished and hazardous homes, with one family even facing the prospect of having their extension demolished entirely.

Instead of using the funds to complete the building work, investigations by the Insolvency Service revealed that Haslam had squandered the money on personal expenses, including cash withdrawals, online shopping, and payments to family members.

Fraudulent Practices Exposed

Michael Haslam operated M&J Builders Limited while it was clearly insolvent, deceptively collecting upfront payments from homeowners for renovations and improvements. Victims, often lured by advertisements in local publications, paid substantial sums for their projects between 2020 and 2022, only to find their homes left in perilous conditions without adequate facilities.

During this time, money from the business accounts was misappropriated for personal gains rather than being reinvested in the projects. Reports indicate that Haslam’s actions caused his victims significant distress, leaving them with unsafe structures, no running water, and mounting bills for repairs they could not afford.

Following a guilty plea for fraudulent trading in May 2026, Haslam received a prison sentence of two years and four months from Derby Crown Court. He was also disqualified from serving as a company director for 15 years, reflecting the severity of his crimes.

Victims’ Heartbreaking Experiences

The financial repercussions of Haslam’s fraudulent activities amounted to approximately £210,000 across seven victims. Many recounted how their lives had been irrevocably affected by his deceitful practices. One victim from Darley Abbey shared her harrowing experience of paying over £150,000 for renovations intended for her retirement, only to receive a fraction of that value in work before Haslam abandoned the project.

She expressed her devastation, stating, “I felt completely distraught when I realised my money had gone. What happened was not an honest mistake or a business failure. It was a pattern of behaviour that left me with a derelict home and enormous financial losses.” Her story is just one of many that illustrate the profound emotional and financial toll inflicted by Haslam.

Unsafe Living Conditions and Financial Strain

Another victim described how her home remained unsafe and without running water for seven months due to Haslam’s negligence. After paying nearly £50,000 for a single-storey extension, she was compelled to fork out an additional £6,600 to restart the project—only to see no work completed. “We were continually discovering dangerous faults,” she lamented, highlighting the persistent trauma her family endured.

Additional accounts from victims reveal a pattern of broken promises and substandard work. One individual from Allestree paid £12,080 for a kitchen renovation, only to find the work unfinished and riddled with safety violations. She expressed regret about choosing Haslam, calling him a “pathological liar” and describing the chaos he left behind as “complete carnage.”

Systematic Deceit and Investigations

Insolvency Service investigations uncovered nearly £400,000 in transactions linked to M&J Builders Limited, revealing significant cash withdrawals and personal spending that did not relate to the business. The evidence indicated a troubling pattern of financial mismanagement and deceit, with large withdrawals made from both business and personal accounts in quick succession.

Mark Stephens, Chief Investigator at the Insolvency Service, emphasised the severity of Haslam’s actions, stating, “Fraud is not a victimless crime.” He highlighted the profound impact on the victims, many of whom would never have engaged with Haslam had they known the true state of his company’s finances. “We will continue to pursue predatory fraudsters like Michael Haslam who exploit innocent people,” he affirmed.

Implications for Future Regulations

The case of Michael Haslam serves as a stark reminder of the vulnerabilities faced by homeowners in the construction industry. It raises critical questions about the regulatory frameworks in place to protect consumers and the need for stringent oversight to prevent such fraudulent activities. The experiences of Haslam’s victims highlight the urgent necessity for enhanced consumer protections and greater accountability within the building sector.

As investigations continue, the hope remains that lessons learned from this case will contribute to reforms that safeguard homeowners from similar predatory practices in the future.